CVC’s Korean Kimchi Fridge Company in Possible Sale Talks

One of Europe’s largest private equity firms, CVC Capital Partners, could sell its South Korean portfolio company WiniaMando Inc., a manufacturer of refrigerators for storing kimchi, the country’s national dish.

A memorandum of understanding issued on the Korean Exchange shows potential buyer Hyundai Green Food Co. Ltd., which is affiliated with popular retailer Hyundai Department Store, is reviewing buying WiniaMando. An update on any forthcoming deal will be disclosed by September 11.

A potential sale could be worth around 150 billion won ($145 million), according to a report from Reuters which cited a spokeswoman from Hyundai. A representative from CVC declined to provide comment.

If the deal closes, it will mark another recent divesture from CVC’s Asian portfolio.

Earlier this month, the Wall Street Journal reported the London-based firm was planning to raise up to $300 million by further reducing its holding in Indonesian retailer Matahari Department Store. CVC is also looking to sale shares it owns in PT Link Net Tbk , an Indonesian broadband and cable-TV operator, in a deal that could raise at least $500 million.

CVC bought out WiniaMando in November 2005, according to the private equity firm’s website; and the investment is likely to have been made via its maiden $750 million Asian fund, which was raised in 2000, or through its $1.98 billion Asia Pacific II vehicle raised in 2005.

The firm is currently investing from its fourth $3.5 billion Asian fund which closed in May.

Kimchi refrigerators account for over 80% of WiniaMando’s sales, and are specifically designed to ferment and preserve kimchi. The company, which has an office in Seoul, developed the industry’s first kimchi refrigerator in 1995, according to a company description on CVC’s website.

CVC’s other investments in the country include South Korea’s KFC franchise, purchased earlier this year from a subsidiary of Doosan Co Ltd for 100 billion won, or $98 million at that time.